New Delhi: As the business stated that its board of directors will meet later this month to discuss the stock split proposals, shares of Hindustan Aeronautics (HAL) soared another 3 percent on Friday to reach new record highs. Investors have received multi-bagger profits from the PSU counter.

The board of directors of the company will meet on Tuesday, June 27, to discuss a proposal to divide its equity shares, according to a filing made on Thursday by the company.

The shares of Hindustan Aeronautics rose 3 percent to Rs 3,630 on Friday amid the excitement around the stock split before giving up its gains and trading unchanged. During the session, the company’s market capitalization reached a high of Rs. 1.2 lakh crore. On Thursday, the stock had a final price of Rs 3,527.70.

A stock split, also known as a sub-division of equity shares, occurs when a firm divides its shares in accordance with a predetermined ratio, splitting the face value and resulting in an increase in the number of shares. Usually, it’s done to make the stock more liquid on the market.

Investors who have stock in demat accounts on the record date are eligible to receive the new shares, and the stock price will be modified in accordance with the split ratio.

In the last three years, shares of Hindustan Aeronautics have returned 600 percent, and in the most recent year, the stock has increased by more than 200 percent. The multi-bagger PSU stock has increased 40 percent so far in 2023.

Bangalore-headquartered Established in December 1940, Hindustan Aeronautics is a government-owned aerospace and defence business in India. One of the oldest and biggest aerospace and defence producers worldwide.